Malawi Energy Regulatory Authority (Mera) has approved implementation of a 12 percent electricity tariff increase, a third for Electricity Supply Corporation of Malawi (Escom) under its four-year tariff adjustment schedule. Following the increase, consumers are now paying an average of K160.13 per kiloWatt-hour (kWh), up from the previous K142.98. Mera acting chief executive officer Dad Chinthambi said Escom is required to submit to the regulator the schedule for new tariff charges for all customer categories.
He said: “Going forward, Escom is urged to strictly adhere to regulatory obligations as we implement the base tariff, one of which is timely submission of quarterly performance reports on the agreed key performance indicators [KPIs]. “I must mention that Escom has failed to submit reports on time as was agreed at the beginning of the base tariff implementation. This complicates the overall implementation process.” Reacting to the approval yesterday, Consumers Association of Malawi (Cama) executive director John Kapito described the increment as unfortunate in the face of Escom failing to fulfil its KPIs that are key in helping the parastatal improve service delivery.
He said: “Until today, we have not seen any changes in the KPIs. We have argued with Mera and we will keep on arguing as well. The KPIs were also meant to ensure that they are also punished.
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“When consumers face poor quality and meanwhile Escom is still getting whatever they were at the margin in the tariff tariffs, you can’t make sense out of it.” Human Rights Defenders Coalition chairperson Michael Kaiyatsa agreed with Kapito and wondered why the tariff increase has been approved even though Escom has failed to submit its quarterly performance reports to Mera. “Escom should only be allowed to raise tariffs if it meets clear targets and proves real improvements. These performance reports should also be made public so that consumers understand what they are paying for,” he said.
On his part, economist Christopher Mbukwa said just like fuel, electricity is a key input in the production of goods and services. “As such, expect the adjustments to electricity tariff to be transmitted to many commodities. The timing could not be worse as the combined effect of the electricity and fuel prices would be harsh on most average Malawians,” he said.
Yesterday, Escom chief public relations and communication officer Pilirani Phiri conceded that customers are being subjected to a number of challenges including delayed faults resolution. But he said the Escom board and management were aware that internal inefficiencies have also compounded the challenges.
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